United Nations Celebrates Alvin Chau Arrest, Analysts Say Bad for Future Junkets

Alvin Chua is innocent until proven shamefaced of the illegal cross-border gambling charges he’s cladding inwards China. But the United Nations says his halt is nonetheless a electropositive development.

Chua, the Chinese billionaire who amassed his circumstances through and through his founding of the Suncity Group, is existence held by authorities inward Macau. Local officials in that respect say an investigation into his businesses’ operations is ongoing. The city of Wenzhou is seeking Chau’s extradition to the Zhejiang Province. He will human face charges of illegally running online casinos and play excursions to Macau.

Macau’s VIP junkets experience long been accused of potentially facilitating the laundering of money for mainland China’s richest people. The UN says Chau’s halt should live a major wake-up ring for the junket industry.

Chau’s hitch warrant is no more uncertainty sending shockwaves through and through unionized criminal offense inwards Hong Kong and Macau, but also Cambodia, Laos, and the Philippines,” said Jeremy Douglas, the Regional Representative of the United Nations Office on Drugs and Crime (UNODC) for Southeast Asia and the Pacific.

The UNODC’s briny nidus is the trafficking and clapperclaw of illicit drugs, as intimately as exposing crook syndicates, international terrorism, and political corruption.

Arrest Further Damages Junkets

In his release, Douglas added that Suncity has been linked to major do drugs traffickers and money laundering networks for many years. Alvin Chau’s arrest only if adds negativism to junket systems throughout Asia that already don’t get necessarily glowing reputations.

Gaming analysts at JPMorgan who are focused on Macau and other Asiatic cassino markets say Chau’s custody presents a sedate hereafter for VIP promoters in the Chinese enclave.

What’s the impact? Really bad for the junket/VIP industry,” JPMorgan analysts DS Kim, Amanda Cheng, and Livy Lyu noted. “It goes without locution that Mr. Chau is arguably the biggest — and certainly most famous — figure inward the junket industry, as the founder/CEO of the unchallenged biggest junket inwards the world, Suncity, which accounted for 40 percent to 45 percent of the junket market.”

The Asian gaming specialists say Chau’s arrest, despite him maintaining that he nor Suncity experience occupied in any illegal operations, will potential scare other junket operators.

“The fact that regular he can buoy follow arrested for just now running the junket — what seems to us similar real normal junket activities — should send a iciness pile the prickle of any and all junkets,” the JPMorgan note added.

VIP Numbers

The JPMorgan analysts say Chau’s stoppage is a wake-up send for for junkets, but won’t needfully have a negatively charged long-term wallop on Macau casinos. However, gaming numbers inward the neighborhood are relieve intemperately propped up by junkets.

According to the Macau Gaming Inspection and Coordination Bureau, VIP junket rooms accounted for some 40 percent of the region’s gross gaming revenue (GGR) inward pre-pandemic 2019.

Macau’s half a dozen licensed casino operators collectively generated rough $36.4 billion that year. That means junket rooms won around $14.6 1000000000 from their high-end clientele.

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